Insights | 07.14.21
A Little-Known "Back Door" Trick for Boosting Your Roth Contributions
An additional after-tax contribution to your 401(k), now allowed in the plans of many large employers, can grow tax free if it’s moved to a Roth account. According to a survey of 263 employer-sponsored retirement plans by Alight Solutions, about half offer the option to make after-tax contributions. Vanguard says about 40% of the 4.7 million participants in its 401(k) plans have access to after-tax savings. Of those, 10% have made such contributions. Fidelity Investments says more than 90% of the 19.5 million participants in the 401(k) plans it administers are eligible to make after-tax contributions.
Read the full article on Wall Street Journal.